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The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 90,000 wheels annually Direct materials Direct labor Variable
The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 90,000 wheels annually Direct materials Direct labor Variable manufacturing overhead Fored manufacturing overhead $18,000 $27000 $13,500 $57000 An outside supplier has offered to sell Talbot similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier. $12.000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $32.100 per year. Direct laboris a variable cost. At what purchase price for the wheels would Talbot be indifferent between making or buying the wheels? (Round your answer to 2 decimal places) O $078 O $128 51.14 O $1.09
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